Annual assessment of Highways England’s performance: Summary April 2015 – March 2016 Background Highways England manages the strategic road network – England’s motorways and main A roads.

The government has set the outcomes and improvements that Highways England must deliver from April 2015 to March 2020 – the first road period. Over these five years, the company is responsible for delivering over £11bn of public investment into the network.

The Office of Rail and Road (ORR) independently monitors Highways England’s performance against these targets. Our report on Highways England’s first year of operation covers:

- How Highways England has performed against its eight key outcomes
- How it is managing the network and delivering improvements
- How Highways England is delivering its licence requirements

The strategic road network

95% of English residents and 99% of vehicles use the strategic road network at least once a year. In 2015, 69.7 billion vehicle miles were driven on the network, of which 74% were cars and 25% vans and lorries.

Traffic on the strategic road network grew by 19% between 2000 and 2015 with the biggest growth coming from light goods vehicles, which increased by 61% in the same period. The Department for Transport’s national transport model predicts that, between 2010 and 2040, traffic on the network will increase by between 29% and 60%.

Key messages

1. Highways England has made a good start to delivery in the first road period. It has met its performance targets and delivered its investment commitments in 2015-16.

2. Highways England now needs to implement robust plans to make sure that it delivers targets in the rest of the road period, including improving safety performance, customer service and environmental mitigations.

3. There is an opportunity for Highways England to improve its management of risks to network investment delivery over the road period. In particular, there is more to do in planning and delivering investment efficiently and in demonstrating that network condition is being managed sustainably. Operational performance Highways England has met its performance requirements for 2015-16. It has exceeded its targets for maintaining network availability, clearing motorway incidents, and maintaining the quality of the road surface. It has also progressed its environmental strategies and plans, including publishing its biodiversity action plan.

On some other measures, the company does not have annual targets. For example, the company must make the network safer, including reducing the number of people killed and seriously injured on the network by 40% by the end of 2020. Data for 2015 show a reduction in the number of killed and seriously injured compared to the previous year, but the company needs to focus on this area if it is going to meet its 2020 target.

Highways England must achieve 90% user satisfaction by March 2017. This year, it achieved 89.3% and although this is an improvement on the previous year, it needs to carefully plan how it will hit its 90% target.

Capital investment Highways England must deliver £11.4bn of capital investment by 2020. It delivered its major scheme commitments for 2015-16, including opening five schemes to traffic, and starting construction of eight further schemes, one more than planned. However, on schemes that have opened for traffic, expenditure for the year was £4m (4%) higher than estimated. This was primarily down to undertaking additional renewal work as part of the schemes.

Looking forward, ORR is concerned that Highways England has not fully set out how it is managing risks to delivery of capital investment in future years, although the company is working to improve its plans. Highways England needs to set clear baselines for scope, cost and timings of schemes, and explain how the portfolio will be delivered within available funding.

Financial performance Highways England spent £3.0bn in 2015-16, including £1.9bn on its capital programme. This was in line with its funding.

The company has a target to deliver £1.2bn of efficiency savings by March 2020. It has made progress in its first year, achieving its internal efficiency target of £33m. Efficiencies are expected to rise as delivery of the capital programme increases during the road period.

Priorities for 2016-17 In 2016-17, Highways England needs to:

- Set out clear plans for delivery of future performance targets
- Improve its plans for capital investment delivery, and its capability for portfolio, programme and project management
- Improve data quality, including data about its assets and its efficiency
- Improve transparency of its plans and performance
- Take forward its planning for the next road period and develop evidence-based route strategies

Highways England’s expenditure in 2015-16

## Performance Specification: delivery of key performance indicators

| Outcome | KPI and target | Performance in 2015-16 | RAG 2015-16 | RAG Road Period 1 | |---------|----------------|------------------------|-------------|------------------| | **Making the network safer** | Killed and seriously injured Target: 40% reduction by end of 2020 | Improvement in 2015, but more needed to deliver 2020 target | Amber | Amber | | **Improving user satisfaction** | Road user satisfaction Target: 90% by March 2017 | 89.3% satisfaction | Amber | Amber | | **Supporting the smooth flow of traffic** | Network availability Target: 97% lane availability in any one rolling year | 98.4% availability | Green | Green | | | Incident clearance Target: 85% of motorway incidents cleared within one hour | 86% cleared within one hour | Green | Green | | **Encouraging economic growth** | Average delay (seconds per vehicle mile) Target: No target set | 8.9 seconds delay per vehicle mile | Amber | Amber | | **Delivering better environmental outcomes** | Noise important areas mitigated Target: Mitigate at least 1,150 noise important areas by March 2020 | 48 delivered | Amber | Amber | | | Improved biodiversity Target: Publish biodiversity action plan | Action plan published in June 2015 | Green | Green | | **Helping cyclists, walkers and other vulnerable users** | Number of new and upgraded crossings Target: No target set | 204 delivered | Amber | Amber | | **Achieving real efficiency** | Capital expenditure savings Target: Total savings of at least £1.212bn on capital expenditure by March 2020 | Met internal target of £33m | Green | Amber | | | Progress of work, relative to Delivery Plan Target: No target set | Delivery in 2015-16 largely to plan, risks to delivery later in the road period | Green | Amber | | **Keeping the network in good condition** | Pavement condition Target: 95% of pavement requiring no further investigation for possible maintenance | 95.4% requires no further investigation | Green | Green | Major scheme delivery in 2015-16

| Major scheme | Committed date | Actual date | |--------------|----------------|-------------| | A160/A180 Immingham | 2015-16, Q1 | 2015-16, Q1 | | A21 Tonbridge to Pembury | 2015-16, Q1 | 2015-16, Q1 | | M1 J13 – J19 | 2015-16, Q3 | 2015-16, Q3 | | M5 J4a – J6 | 2015-16, Q3 | 2015-16, Q3 | | M6 J16 – J19 | 2015-16, Q3 | 2015-16, Q3 | | A50 Uttoxeter | 2015-16, Q3 | 2015-16, Q3 | | M5 Junctions 5 to 7 | 2015-16, Q3 | 2015-16, Q2 | | A43 Abthorpe junction | Late 2016 | 2015-16, Q4 |

Major schemes opened for traffic

| Major scheme | Committed date | Actual date | |--------------|----------------|-------------| | A14 Kettering bypass widening | 2015-16, Q1 | 2015-16, Q1 | | A453 widening | 2015-16, Q2 | 2015-16, Q2 | | M1 J28 – J31 | 2015-16, Q4 | 2015-16, Q4 | | M6 J10a – J13 | 2015-16, Q3 | 2015-16, Q4 | | M1 J39 – J42 | 2015-16, Q3 | 2015-16, Q3 |

Highways England’s main asset types – asset health

- **Road**

  - e.g. road surface and markings
  - 95.4% requires no further investigation – above 95% target

- **Structures**

  - e.g. bridges and tunnels
  - Average condition of 84.3% (good)

- **Geotechnical assets**

  - e.g. earthworks and embankments
  - 96.6% are at low risk

- **Technology**

  - e.g. variable message signs
  - Roadside technology 98.7% available

- **Drainage**

  - e.g. pipes and gullies
  - Condition information only held for 27% of assets